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Q1. Suppose that the government cuts taxes in response to a recessionary gap, but because of legislative delays the tax cut is not put in place for 18 months. Assuming that the government's objective is to stabilize output and inflation, use an AD-AS diagram to illustrate how this policy action might actually prove to be counterproductive.
Q2. Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity and preserving price stability. Please also put references so I can verify and if I need more information use them. Length 2 pages.
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
Can you find a Nash equilibrium in pure strategies that is not efficient. In some legislatures, proposals for modifications of the law are formulated by committees.
She is considering quitting her job and going to university full time for four years.
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
A university registrar who uses her experience with university admissions along with your high school grades, application essays, letters of recommendation.
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another. Use examples to illustrate.
Changes in disposable income affect government purchases and the government purchase function. How do changes in net taxes affect the consumption function.
The banking system is a fractional reserve banking system with a desired reserve deposit ratio. Banking system is a fractional reserve banking system.
there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
A company's cash sales for the month are $200,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow.
Conditions that exist when they shut down their operations and the conditions that exist when they resume their operations.
Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.
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